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Suspension and Debarment

Purpose

The debarment and suspension procedures are intended to prevent waste, fraud and abuse in Federal procurement and nonprocurement actions. Debarment or suspension of an organization or individual from doing business with the Federal Government is not meant to be a punishment, but a procedure to ensure that federally-funded business is conducted legally with responsible persons. Debarment and Suspension (Nonprocurement), 49 CFR part 29, provides rules for a Department wide system of debarment and suspension under nonprocurement transactions; the Federal Acquisition Regulation (FAR) part 9.4, Debarment, Suspension, and Ineligibility, provides rules for procurement actions. Both 49 CFR part 29 and the FAR provide for reciprocity between procurement and nonprocurement actions. The General Services Administration (GSA) maintains the list of parties that are debarred, suspended, or excluded from doing business with the government.

SUSPENSION

A suspension may be based on indictments, information or adequate evidence involving transportation crimes, contract fraud, embezzlement, theft, forgery, bribery, poor performance, non-performance, or false statements. A suspension is a temporary action which may last up to one year and is effective immediately.

DEBARMENT

A debarment may be based on convictions, civil judgments or fact based cases involving transportation crimes, contract fraud, embezzlement, theft, forgery, bribery, poor performance, non-performance or false statements as well as other causes. Results in the imposition of a set period of time decided on a case by case basis.

SUSPENSIONS & DEBARMENTS can be extended to include subsidiaries, parent companies & other individuals. All individuals and entities excluded from receiving government grants and contracts are listed on the GSA "Excluded Parties List System".

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